In their notification, RBI stated, “In order to have unfettered access to all payment data for supervisory purposes, it has been decided that all payment system operators will ensure that data related to payment systems operated by them are stored only inside the country within a period of six months.”

In August this year, Govt launched a new Cloud Computing Policy for India, which again forced every Internet and digital company to locally store their data in India.

This might be one of the strongest reasons why Apple is now hesitant to launch their Apple Pay in India – Apple cannot right now store data of Indians in India, as they don’t have any datacenter.

Contactless, PIN-less Payments Not Allowed

Another major reason is NPCI’s decision not to allow PIN-less payments by Apple Pay.

Apple Pay operates a contactless payment system, wherein there is no requirement of any PIN or OTP. Just a fingerprint authorization is enough to process the payment.

Whereas NPCI mandates that a 4 or 6 digit PIN to authorize the payments, and is not allowing biometric access based payments.

This can be another major reason why Apple Pay now wants to wait, instead of right away launching their Apple Pay services.

At a time when digital payments are experiencing an all-time surge in India, with UPI witnessing 900% growth, and 30 crore monthly transactions, this is indeed a bad news for Digital India.

We will keep you updated, as receive more updates.

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Mohul keenly observes the nuances of Indian startup world; and tries to demystify the secrets behind Technology, Marketing, Mobile and Internet. He is a Writer by passion, Marketer by choice and Entrepreneur by compulsion. Follow him on Twitter here: @_mohul

No need to use the word Red Tape. Nothing is going to happen to our country if Apple pay launch halted. Payments data local storage rule is a good and smart move from RBI to monitor all transactions and secure the details of users. RBI rules are there to provide security to us.